ONGC set to open account in Nigeria with 3 oil blocks

TNNApr 24, 2006, 12.18am IST

NEW DELHI: India is finally set to open its account in the latest oil and gas hot spot of the world — Nigeria. The Nigerian government has assured ONGC Videsh and ONGC Mittal Energy of at least three blocks in the next round of mini-bidding slated to kick off in May.

What's more, OVL will be considered as a special case and awarded blocks without pledging investments in Nigeria's infrastructure. OMEL, however, will need to pump in investments, like every other player, in the country's infrastructure to get the mining lease.

OMEL has assured investments up to $6 billion in power and rail infrastructure. The special dispensation for OVL follows the intervention by PM Manmohan Singh last time around when OVL lost out on a potential block to Korean National Oil Company due to a last minute policy change by Nigeria.

China's CNPC is among the other companies who would be invited for this select bidding round, which will offer 10 exploration and production properties.

The blocks which OVL would be looking at are relinquished discovered blocks for which the Nigerian government is now offering on mining leases.

ONGC has been making attempts to make an opening in Nigeria which today has attracted the largest oil majors from Shell to Exxon. ONGC's earlier attempts to get a foothold through an acquisition of the Akpo field were turned down by the Cabinet.